CredPal, a Nigerian financial company, has teamed up with Bolt, a ride-hailing business, to let its consumers “ride now and pay later.”
The cooperation is a deliberate move by Credpal to strengthen its Buy-Now-Pay-Later products and provide clients simple credit financing solutions.
By downloading the CredPal app, users can activate the option to pay for their Bolt rides at the end of the month or at any other convenient time when they have extra money. This allows them to take use of the CredPal Ride-on function.
Fehintolu Olaogun, the co-founder and CEO of CredPal, claims that the solution will improve financial management for all types of income earners in Nigeria.
“I believe transportation is one of the daily essentials that a working Nigerian considers when planning a monthly budget, so what we’ve done with CredPal Ride-On is offer a choice of using credit that has been availed to them to better manage their monthly expenses.”
In his remarks, Kwaku Ampadu-Manu, the country sales manager for Bolt, said that Ride-On is an essential product that might hasten the adoption of digital payments while giving Bolt users an additional payment choice.
We are thrilled to collaborate with CredPal to advance our aim of making our cities for people, not vehicles. “This cooperation allows riders access to a much-needed option that fits their mobility needs without instantly spending out of pocket,” said a spokesman for CredPal.
How does the service function?
Users must register on the CredPal platform in order to access this and have it pay for their travel expenses.
Following that, they can select CredPal as a payment method and enable the option to pay for Bolt rides at the end of the month. Users can also select Ride-On, which enables flexible repayment during the recipient’s salary pay period.
What does this mean for Nigerians?
The emergence of buy now, pay later (BNPL) companies has been one of the most welcomed developments in the Nigerian startup scene over the last three years. Most of these companies allow customers to purchase goods and services that they would otherwise have to put off for months. It’s no surprise that Nigerians seem to have embraced it right away.
These BNPL models will enable Nigerians to enjoy ride-hailing services while remaining cashless and paying at their leisure. This will increase revenue for ride-hailing companies, making it a win-win situation for both parties.
What the collaboration means for both companies.
CredPal may see increased usage of its app as a payment option as a result of this service, while Bolt may see increased patronage of its service.
Currently, the service is only accessible after users have signed up on CredPal, as the startup is responsible for underwriting the cost of their trips. However, unlike regular BNPL offerings, users do not have to pay a portion of their fare during the ride.
Instead, they can use CredPal as a payment method while repaying the ride cost at the end of the month. Users are pre-qualified based on specific parameters, just like in the regular BNPL offer, and repayments are scheduled to coincide with the user’s salary date.
Despite the fact that CredPal is likely the first third-party firm in Nigeria to offer a ride now, pay later option, this isn’t the first time a startup has provided this service to its customers. In 2016, the Indian ride-hailing company Ola launched a credit option that allowed users to book rides without paying in advance for up to seven days. Similarly, GoCatch, an Australian ride-hailing company, added Zip, a BNPL service, as a payment method.